Abstract
The place of interest rates in the economic process has since 1945 been mainly discussed, within the literature in English, along three lines: first, criticism and defence of Keynes’s position; secondly, advocacy of a stock or of a flow analysis, or of the need to combine them; thirdly, examination of the claim of interest to be a suitable and effective regulator of the pace of growth of the nation’s wealth. The following survey tries to explain and criticise this debate and to interject some suggestions into it, without aiming at more than an illustrative coverage of the literature. It is earnestly hoped that the absence of a name from this article will not be taken to imply any judgment on the value and importance of any person’s work.
The author is Brunner Professor of Economic Science in the University of Liverpool.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Bibliography
John Maynard, Lord Keynes, The General Theory of Employment, Interest and Money (London: Macmillan, 1936).
Don Patinkin, Money, Interest and Prices (Evanston, I11., U.S.A.: Row, Peterson, 1956).
John Maynard, Lord Keynes, “The General Theory of Employment.” Quarterly Journal of Economics, Vol. LI, February 1937.
R.S. Sayers, “Ricardo’s Views on Monetary Questions,” Quarterly Journal of Economics, Vol. LXVII, February 1953.
Knut Wickseil.
Sir Dennis Robertson, “Mr. Keynes and the Rate of Interest,” in Essays in Monetary Theory (London: Staples, 1940).
J.R. Hicks, “A Rehabilitation of ‘Classical’ Economics?” Economic Journal, Vol. LXVII, June 1957.
Don Patinkin, “Keynesian Economics Rehabilitated: a Rejoinder to Professor Hicks,” Economic Journal, Vol. LXIX, September 1959.
Franco Modigliani, “Liquidity Preference and the Theory of Interest and Money, Econometrica, Vol. XII, 1944.
F.H. Hahn, “The Rate of Interest and General Equilibrium Analysis,” Economic Journal, Vol. LXV, March 1955.
L.R. Klein, “Stock and Flow Analysis in Economics,” Econometrica, Vol. XVIII, July 1950.
William Fellner and Harold M. Somers, “Stock and Flow Analysis: Comment,” Econometrica, Vol. XVIII, July 1950.
L.R. Klein, “Stock and Flow Analysis: Further Comment,” Econometrica, Vol. XVIII, July 1950.
Karl Brunner, “Stock and Flow Analysis: Discussion,” Econometrica, Vol. XVIII, July 1950.
William Fellner and Harold M. Somers, “Stock and Flow Analysis: Note on the Discussion,” Econometrica, Vol. XVIII, July 1950.
William Fellner and Harold M. Somers, “Note on ‘Stocks’ and ‘Flows’ in Monetary Interest Theory,” Review of Economics and Statistics, Vol. XXXI, May 1949.
A. Llewellyn Wright, “Sequence Analysis and the Theory of the Rate of Interest,” Economic Journal, Vol. LXV, December 1955.
B. Tew, “Sequence Analysis and the Theory of the Rate of Interest,” Economic Journal, Vol. LXVI, September 1956.
R.W. Clower, “Productivity, Thrift and the Rate of Interest,” Economic Journal, Vol. LXIV, March 1954.
Cliff L. Lloyd, “The Equivalence of the Liquidity Preference and Loanable Funds Theories and the New Stock-flow Analysis,” Review of Economic Studies, Vol. XXVII, June 1960.
R.W. Clower and D.W. Bushaw, “Price Determination in a Stock-flow Economy,” Econometrica, Vol. XXII, July 1954.
Don Patinkin, “Liquidity Preference and Loanable Funds: Stock and Flow Analysis,” Economica, Vol. XXV, November 1958.
Hugh Rose, “The Rate of Interest and Walras’s Law,” Economica, Vol. XXVI, August 1959.
Hugh Rose, “Liquidity Preference and Loanable Funds,” Review of Economic Studies, Vol. XXIV, February 1957.
H.G. Johnson, “Some Cambridge Controversies in Monetary Theory,” Review of Economic Studies, Vol. XIX, No. 49, 1951–52.
Lawrence E. Fouraker, “The Cambridge Didactic Style,” Journal of Political Economy, Vol. LXVI, February 1958.
Gary S. Becker and William J. Baumol, “The Classical Monetary Theory: The Outcome of the Discussion,” Economica, Vol. XIX, November 1952.
Oscar Lange, “Say’s Law: A Restatement and a Criticism,” in Studies in Mathematical Economics and Econometrics; in memory of Henry Schultz (O. Lange, F. Mclntye and T.O. Yntema, eds.) (Chicago University Press).
Don Patinkin, “The Indeterminacy of Absolute Prices in Classical Economic Theory,” Econometrica, Vol. XVII, January 1949.
Don Patinkin, “The Invalidity of Classical Monetary Theory,” Econometrica, Vol. XIX, April 1951.
Don Patinkin, “A Reconsideration of the General Equilibrium Theory of Money,” Review of Economic Studies, Vol. XVIII, 1949–50.
Don Patinkin, “Relative Prices, Say’s Law and the Demand for Money,” Econometrica, Vol. XVI, April 1948.
E.J. Mishan, “A Fallacy in the Interpretation of the Cash Balance Effect,” Economica, Vol. XXV, May 1958.
S.C. Tsiang, “Liquidity Preference and Loanable Funds Theories, Multiplier and Velocity Analyses: a Synthesis,” American Economic Review, Vol. XLVI, September 1956.
John Maynard, Lord Keynes, “Alternative Theories of the Rate of Interest,” Economic Journal, Vol. XLVII, June 1937.
Joan Robinson, The Rate of Interest and Other Essays (London: Macmillan, 1952).
Kenneth E. Boulding, “M. Allais’ Theory of Interest,” Journal of Political Economics, Vol. LIX, February 1951.
F.P.R. Brechling, “A Note on Bond Holding and the Liquidity Preference Theory of Interest,” Review of Economic Studies, Vol. XXIV, 1956–57.
Borje Kragh, “Two Liquidity Functions and the Rate of Interest: a Simple Dynamic Model,” Review of Economic Studies, Vol. XVII, 1949–50.
Ralph Turvey, “Consistency and Consolidation in the Theory of Interest,” Economica, Vol. XXI, November 1954.
N.J. Cunningham, “Business Investment and the Marginal Cost of Funds,” Metroeconomica, Vol. X, 1958.
G. Clayton, “A Note on the Banking System’s Power to Lend,” Metroeconomica, Vol. VII, 1955.
J.K. Eastham, “A Redefinition of the Boundary between Interest and Profit Theories,” in Dundee Economic Essays, J.K. Eastham, ed. (Dundee, 1955).
M.D. Brockie and A.L. Grey, “The Marginal Efficiency of Capital and Investment Programming,” Economic Journal, Vol. LXVI, December 1956.
W.H. White, “The Rate of Interest, the Marginal Efficiency of Capital and Investment Programming,” Economic Journal, Vol. LXVIII, March 1958.
M.D. Brockie and A. Grey, “The Rate of Interest, the Marginal Efficiency of Capital and Investment Programming—A Rejoinder,” Economic Journal, LXIX, June 1959.
J.E. Meade and P.W.S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” Oxford Economic Papers, No. 1, October 1938.
G.L.S. Shackle, “Interest-rates and the Pace of Investment,” Economic Journal, Vol. LVI, March 1946.
G.L.S. Shackle, “Business and Uncertainty,” Bankers’ Magazine, Vol. CLXXXIX, March 1960.
Sir Roy Harrod, Towards a Dynamic Economics (London: Macmillan, 1948).
Author information
Authors and Affiliations
Copyright information
© 1965 The Royal Economic Society and the American Economic Association
About this chapter
Cite this chapter
Shackle, G.L.S. (1965). Recent Theories Concerning the Nature and Role of Interest. In: Surveys of Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-00278-8_3
Download citation
DOI: https://doi.org/10.1007/978-1-349-00278-8_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-00280-1
Online ISBN: 978-1-349-00278-8
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)